Earlier in the week it was revealed that Netflix has been telling Verizon customers that the reason the streaming video experience is so poor is because Verizon's network performance isn't very good. This has made Verizon very angry. In a letter to Netflix, the company said that Netflix should stop defaming them to their customers or it would be forced to take legal action against it.
"Netflix's false accusations have the potential to harm the Verizon brand in the marketplace," Verizon Executive VP and General Counsel Randal Milch wrote in a letter to Netflix General Counsel David Hyman. "The impression that Netflix is falsely giving our customers is that the Verizon network is generally 'crowded' and troublesome. This could cause a customer to think that any attempted viewing of video, whether it be Hulu, YouTube or other sites, would yield a similarly 'crowded' experience, and he or she may then choose to alter or cease their use of the Verizon network."
We will have more on this story as it develops.
You can read the letter sent to Netflix (PDF).
Source: Ars Technica